BoE is holding a press conference now after announcing the first cut in UK interest rates since 2020
Bank of England cuts interest rates to 5% in first reduction since March 2020
The pound is weakening as traders anticipate the Bank of England’s interest rate decision at noon today.
Sterling has dropped by over half a cent against the US dollar to $1.2795, a three-week low.
For the markets, a cut from the Bank of England is a matter of when and not if; however, provided the Bank of England signals it’s the beginning of a cycle, a cut would likely boost the FTSE 100 and weaken the Pound.
Alternatively, the decision to hold rates would likely inspire the greatest volatility: rates markets imply a 57% chance the Bank of England cuts tonight, and the pricing out of that move would likely undermine equities and give a shot in the arm to the Pound.
About Author
More Stories
TikTok breached EU advertising transparency laws, commission says
Dutch climate campaigners vow to take Shell to court again
Top winemaker ‘may have to leave its Spanish vineyards due to climate crisis’